BT Co, a beverage manufacturer, manufactures one product -TruBlood. BT accounts for its Finished Goods Inventory using FIFO. It incurs direct materials costs of $0.50 per unit produced. The line workers are paid (in total) $100 per hour.
BT pays its plant supervisors based in part on salary and in part on the number of units produced in a month. The information for the last seven months of supervisors' salaries is as follows:

For the month ended 6/30/X1, BT sold 1,800,000 units at $2.00 per unit
Other information for the month of June X1:
Fixed Manufacturing Costs (other than Supervisor's Salary) $357,900
Fixed Selling & Administration Costs $60,000
Variable Selling & Administration Costs $0.30 per unit
At 5/31/X1, there were 100,000 units in Ending Inventory. Variable Costing 5/31 Ending
Inventory was $60,000. Absorption Costing 5/31 Ending Inventory was $81,000.
For the month ended 6/30/X1, there were 1,531 of direct labor hours incurred.
BT employs an actual costing system.
REQUIRED:
Provide the following (and support ALL of your work)-
a) BT's variable costing Income Statement for the month ended 6/30/X1
b) BT's absorption costing Income Statement for the month ended 6/30/X1
c) Reconcile and explain the difference between BT's Variable and Absorption Net Operating Income.

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Total Pay $45,000 Month Units Produced Dec X1 2,500,000 Jan X1 49,100 2,700,000 Feb X1 42,000 2,300,000 Mar X1 39,100 1,700,000 AprX1 May X1 48,000 2,600,000 44,000 2,400,000 June X1 41,100 1,900,000 Difference 10,000 1,000,000 S0.01 per unit Variable salaries Fixed salaries $22,100 per month